LOOKS LIKE RISK IS ABOUT TO COME OFF

Get ready for some excitement...it is time for the S&P500 to start moving in a determined fashion. It has traded between 1972 and 2118 over the past four months and yet it is trading where it last was on November 20. So the index has covered a lot of ground but has been marking time....going nowhere. But now VIX is telling us that there is about to be some excitement...have a look at the daily chart of VIX below....notice how the price and moving averages have converged which invariably precedes a sharp.